Archive for the ‘Distribution of Mutual Funds & IPOs’ Category

Weekly Update of The Market (08th-12th February)

Hello Friends, here, we bring you the weekly overview of the Indian as well as of the Global economy and  latest global business and industry updates.

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Weekly Update of The Market (08th-12th February)

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After starting the year on a good note & Indices making fresh highs within few weeks many Asian markets have corrected between 7 to 10%.

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The global sell off over sovereign debt problems in Europe and an unexpected rise in jobless claims in US put investors on the defensive mode.

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The anxiety about sovereign debt in Greece, Portugal and Spain sparked a sell-off in the Euro & has led strength to US dollar.

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Foreign investors sell off is an outcome of dollar-carry-trade unwinding as when they borrowed the dollar was cheap & now it is recovering.

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Investors viewed the markets in year 2010 with confidence in view of recovery gaining momentum is now shaken over the debt problems, nascent economic recovery & confidence of the governments that stand behind the euro.

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Efforts of China to curb lending preventing overheating in economy also pose a risk to derail the global recovery.

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Back at home, the effect of turmoil in the international market also made government to think its strategy on ambitious disinvestment programme.

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🙂

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Lukewarm response to the NTPC, the much awaited issue managed to get subscription of just 1.2 times on its closing day.

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The maximum bid of 20.87 crore shares was put by Indian institution under the first time adopted French Auction route.

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This has challenged the finance Ministry hopes on the proceeds from disinvestments to make up the sliding revenue & rising expenditure.

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While it looks that PSU disinvestment may not yield desired results on market weakness, the 3G auction i.e. expected to garner Rs. 35,000 crore could be postponed to next fiscal year.

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The fate of some of the IPO’s like NMDC, Satluj Jal Vidyut Nigam Ltd and Rural Electrification Corporation that are on the disinvestment agenda before March 31, looks tough to sail through, if the stock markets do not rise and big investors do not come back.

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On the contrary, Banks like Bank of Baroda & Indian Bank that were expected to raise money overseas have put now their plans on hold.

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The good news from the external sector continued as the data showed a 9.3% annual increase in exports in December to $14.6 billion, a second consecutive month rise.

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While imports increased by 27.2% from a year earlier to $24.75 billion.

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Food inflation remained at high levels & rose to 17.56% in the week ended 23 January 2010 from 17.40% in the previous week on the back of rising pulses & potato prices.

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Markets are likely to take a closer view of the advance estimates on economic growth for the current fiscal ending March 2010 scheduled to be released on Monday.

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In the days to come an activity in the sectors like railways, fertiliser, textiles, pharma, education, power and infrastructure may be seen on expected positive policy announcements and budgetary sops.

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It was clearly mentioned last week that world markets are going in downtrend and one should be careful in such a scenario and that one should be moving in cash.

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Now the markets have taken a very sharp fall last week due to rise in Dollar Index and fall in all asset classes.

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The coming week might see some counter rally from lower levels.

Nifty faces resistance between 4900-5000 levels and Sensex between 16400-17000 levels.

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If we talk about commodity markets then one can see that strengthening dollar and lack of firm global cues had pressurized commodities prices to move southward.

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Investors are selling riskier assets and putting their money in dollar as a safe haven buying.

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Debt concerns facing Greece, Portugal and Spain coupled with dollar index which is trading above the mark of 80 is most likely to compel commodities to trade lower.

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French and euro zone GDP, USD advance retail sales, USD U. of Michigan Confidence will give further direction to commodities.

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Investors should keep an eye on gold – silver ratio.

It was 58:1 few months back, now reached to 67:1 on MCX, heading towards the level of 70:1.

It is demonstrating more selling in silver.

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🙂

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Stay Tuned for More on weekly updates.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

Moneywise…Be Wise ;)

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If you find yourself asking the question –

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Why should I Save ?

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Why should I Invest ?

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Where do I Invest ?

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Who would Guide me to take informed decision on my Investments ?

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…then look no further !

Why SMC?

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SMC Group, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

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SMC Group, having rich experience of more then two decades in financial markets, is one of the largest & most reputed investment solutions company that provides a wide range of services to its client base of more than 5, 50,000 clients with presence in more then 1500 cities.

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SMC Online, an unit of SMC Group, is one stop financial investment portal for investor’s all financial needs.

Investors can trade online in Equities, FNO, Currency Futures, Commodities, apply online for IPOs, and invest online in Mutual Funds.

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SMC is :

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a) 4th Largest broking house of India in terms of trading terminals (Source: Dun and Bradsheet, 2008)

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b) 5th largest distributor of Initial Public Offering (IPOs) in retail (Source: Prime Data Ranking)

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c) Awarded ‘Fastest Growing Retail Distribution Network in Financial Services’ (Source: Business Sphere, 2008)

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d) Recipient of ‘Major Volume Driver Award’ from BSE for last three years consecutively.

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e) Nominated among the top three in the CNBC Optimix Financial Services Award 2008 under National Level Retail Category.

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f) One of the largest Proprietary Arbitrage Desk doing risk free arbitrage in equities & commodities.

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g) Commanding turnover of more then 3% in equity market, 4% in commodity market and 10% in DGCX.

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h) Transparent and professional management.

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j) Relentless focus on investor care.

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k) World class in-house research facilities providing research support to investors.

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l) All financial products and services under one roof.

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Next Blog we would try to read more about the other SMC’s investment products and services.

Stay Tuned for more on this 🙂

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To know more about the SMC Products and Services, click here.

Farmers in Upbeat Mood over Prospects of Commercial Crops

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the globe.

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Farmers in Upbeat Mood over Prospects of Commercial Crops

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Farmers in upbeat mood over prospects of commercial crops

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Vagaries of nature may have dampened the mood of farmers in the district of Guntur in Andhra Pradesh with fears lingering over decrease in the yield, but the first signs in the yield of commercial crops are already indicating towards a record production.

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The prolonged drought which delayed the sowing operations in kharif last year meant that the acreage has decreased by about 20,000 acres.

The year 2008-2009, the paddy yield has shot up to 12.96 MT in 2009-2010.

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The drought, however, seems to have hit the prospects of cotton farmers as the yield had been reduced by 1.25 lakh MT.

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As against the total yield of 6.61 lakh MT in the year 2008-2009, the yield has fallen to 5.36 lakh MT in the year 2009-2010.

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In comparison, chilli farmers are smiling as both the acreage and production have shot up considerably.

The yield has shot up by 40,000 MT and the acreage too has increased by about 40,000 hectares.

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In the year 2008-2009, statistics available with the Agriculture Department showed that, chilli was sown in 63, 628 hectares and the cultivable area went up by 67, 867 hectares.

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In Other major Commodities Update, there is a news of soyabeans and corn rice rising the most last week and on the other news, sugar prices surging up by Rs 14/kg in Kerala after the subsidy rollback by state govt.

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Soybeans, Corn Rise Ahead of U.S. Forecasts for Crop Reserves:

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Soybeans rose the most in almost a week on speculation that U.S. crop reserves may be lower than earlier estimates.

Corn and wheat also advanced.

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Soybeans for March delivery rose as much as 13.25 cents, or 1.5 percent, on the Chicago Board of Trade, the biggest intraday gain since Feb. 2.

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The U.S. Department of Agriculture is expected to cut its projection for soybeans reserves before the 2010 harvests to 221 million bushels in a report on Feb. 9, from the 245 million estimated last month, a Bloomberg News survey showed.

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Subsidy rollback pushes sugar prices by Rs 14/kg in Kerala:

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Kerala government’s recent decision to stop Rs 28-crore subsidy to its grocery retailing arm Supplyco has pushed sugar prices by around Rs 14 per kg in Supplyco’s outfits.

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Though, sugar prices in state-run shops is still lower than the open market price of around Rs 45 per kg or even Nafed-fixed price of Rs 41 per kg, but low stocks have minimized the benefit of low prices.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

ECBs and FCCBs Dropped 6% in Dec 2009 !

external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) have dropped 6% in December 2009

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Total approvals received by Indian companies to raise capital by way of external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) have dropped 6% in December 2009 to $1.56 billion as against $1.66 billion in December 2008.

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This is as per the data released by the Reserve Bank of India (RBI).

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Total approvals received by Indian companies to raise capital by ECBs and FCCBs stood at $2.35 billion in November 2009.

There were about 68 deals in December 2009, out of which three deals were by way of FCCBs.

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Daimler India Commercial Vehicles Pvt Ltd raised $402 million by way of ECBs for new projects for a maturity period of eight years and 11 months.

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“The ECB market is definitely looking bullish for 2010, however the robustness will not be the way it was in 2007.

Indian banks are also not lending to the corporates here.

Hence, there will be appetite for foreign funds. However, there is a challenge on the forex fluctuation risk as well,” noted Jagannadham Thunuguntla, equity head with SMC Capital.

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According to market analysts, more Indian companies are going to take the ECB route to raise funds, with the interest rates heading northwards in India.

Currently there is also more demand for short-term funds.

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Investment Opportunities for Non Resident Indians (NRIs)

Hello Friends here we bring you guys a write up on “Online Non Resident Indian (NRI) Trading” and info on “SMC’s state-of-the-art Online Trading facility“.

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Investment Opportunities for Non Resident Indians

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With Indian economy, witnessing a phenomenal growth since the last decade and after being touted as a success story even after downturn of last year, more and more of NRI corporates and Investors, beside multinationals, are lining up to enter the Indian share market.

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But it becomes very important for NRIs to select investment avenues with due diligence as situation is turning better but still somewhere delicacy remains.

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The challenge for NRIs here is to recognize best-in-class investment products and facilitators to help their investment needs in India.

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Most of the reputable and registered brokers in India offer Online Trading facility in various financial products for NRIs.

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One of the India’s largest and experienced provider of online trading services,

SMC Group is also now providing an online trading platform for NRI’s (based

all across the globe) in various products for eg; Equities, derivatives, apply

online for IPOs and invest online in Mutual Funds.

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SMC Online, no doubt, is having a range of online investment products.

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With a SMC’s state-of-the-art Online Trading facility, buying and selling of shares is now just a click away.

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With this SMC’s state-of-the-art Online Trading facility platform, NRI’s all over

the world can receive benefits in as below:

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1. Online trading account in NSE & BSE

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2.  Online trading account in Equity, Futures & Options through NRO account

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3.  Online IPO & Mutual Fund Investments facility through NRO account

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4.  Online trading account in DGCX

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5.  Online Back-office support

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6.  Research reports on email

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7.  Investment in Insurance

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Through this SMC’s NRI Online trading platform, non resident Indians living around the world, can enjoy a hassle free investing process in India.

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Moreover, SMC’s state-of-the-art Online Trading facility is fast, safe and secure.

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Whether, one is an experienced securities trader or new to securities trading, he/she will be happy to have a long term investment association with SMC.

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Next Blog we would try to read about the SMC categorized Online trading services on the basis of its customer’s investment needs.

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Stay Tuned for more on this 🙂

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To know more about the state-of-the-art Online Trading facility, click here.

Wise Money Weekly Update of The Market (Week: 25th – 29th January)

Hello Friends, here, we bring you the weekly view of the Indian as well as of the Global markets and latest global business and industry updates..

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Wise Money Weekly Update of The Market (Week: 25th - 29th January)

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A sell-off in global stocks, disappointment from key corporate earnings like L&T, possibilities of further monetary tightening by China and US president‘s proposal to put new restrictions on big banks weighed heavily on the domestic markets.

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In the forthcoming week, domestic markets are expected to remain volatile as traders roll positions in the derivative segment from January 2010 series to February 2010 series.

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Markets will also take cue from monetary policy which is scheduled to come out on January 29.

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Though tightening is largely expected by way of Cash Reserve Ratio hike as RBI has already started the first phase of ‘exit’ in its October 2009 policy statement but there is a belief if the RBI sucks out some liquidity, it may not raise interest rates, since liquidity is excess in the system.

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The Indian food price inflation is largely due to supply constraints.

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But going ahead anticipation of decline in food price inflation & lower borrowing from government in future because of huge money raising plans through disinvestment are some of the factors that are likely to determine RBI stance on increasing policy rates.

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The widely watched wholesale price index rose an annual 7.3% in December 2009, its highest since November 2008 and accelerating from a 4.8 % rise in November 2009.

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Food prices rose 16.81 % in the 12 months to 9 January 2010, easing from nearly 20 % in early December.

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On the Global economic front, GDP of China returned to double-digit growth in the fourth quarter of 2009 at 10.7 percent, and over the full year GDP surpassed the government’s target of eight percent.

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Back at home, domestic economy, which grew at 7.9% in the September quarter, is expected to grow 6-6.5% in the December quarter.

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The World Bank has raised its forecast at 2.7% for global growth in 2010.

Moreover it has raised its forecast for US growth in 2010 to 2.5% growth, after predicting 1.8% in June.

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Japan’s gross domestic product will expand 1.3% this year, more than the 1% predicted in June.

The euro area’s economy is forecasted to grow 1%, compared with the earlier estimate of 0.5% expansion.

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🙂

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Stay Tuned for More on this..

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

Hello Friends, here, we bring you the weekly view of the Indian as well as of the Global markets and latest global business and industry updates.

Mutual Funds : Marginalise Your Investment Risk

Hello Friends here we come up with another write up on “SMC Gyan Series”.

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Mutual Funds : Marginalise Your Investment Risk

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Topic is “Mutual Funds : Marginalise Your Investment Risk
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Mutual funds are the best investment tool for the retail investor as it offers the twin benefits of good returns and safety as compared with other avenues such as bank deposits or stock investing.

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Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit.

Keep in mind the points listed below and you could at least marginalize your investment risk:

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1) Past performance –

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While past performance is not an indicator of the future it does throw some light on the investment philosophies of the fund, how it has performed in the past and the kind of returns it is offering to the investor over a period of time.

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Also check out the two-year and one-year returns for consistency.

How did these funds perform in the bull and bear markets of the immediate past?

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Tracking the performance in the bear market is particularly important because the true test of a portfolio is often revealed in how little it falls in a bad market.

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2) Know your fund manager

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The success of a fund to a great extent depends on the fund manager.

The same fund managers manage most successful funds.

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Ask before investing, has the fund manager or strategy changed recently?

For instance, the portfolio manager who generated the fund’s successful performance may no longer be managing the fund.

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3) Does it suit your risk profile?

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Certain sector-specific schemes come with a high-risk  high-return tag.

Such plans are suspect to crashes in case the industry loses the market men fancy.

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If the investor is totally risk averse he can opt for pure debt schemes with little or no risk.

Most prefer the balanced schemes which invest in the equity and debt markets.

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Growth and pure equity plans give greater returns than pure debt plans but their risk is higher.

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4) Read the prospectus

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The prospectus says a lot about the fund.

A reading of the fund’s prospectus is a must to learn about its investment strategy and the risk that it will expose you to.

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Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.

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But remember that all funds carry some level of risk.

Just because a fund invests in does not mean it does not have significant risk.

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Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you.

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5) How will the fund affect the diversification of your portfolio?

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When choosing a mutual fund, you should consider how your interest in that fund affects the overall diversification of your investment portfolio.

Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk.

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6) What it costs you?

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A fund with high costs must perform better than a low-cost fund to generate the same returns for you.

Even small differences in fees can translate into large differences in returns over time.

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Finally, don’t pick a fund simply because it has shown a spurt in value in the current rally.

Ferret out information of a fund for at least three years.

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The one thing to remember while investing in equity funds is that it makes no sense to get in and out of a fund with each turn of the market.

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Like stocks, the right equity mutual fund will pay off big — if you have the patience.

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Similarly, it makes little sense to hold on to a fund that lags behind the total market year after year.

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SMC Global Securities : Money Wise Be Wise !

Rubber Imports Seen Rising to Record Levels This Fiscal

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Rubber Imports Seen Rising to Record Levels This Fiscal

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Rubber imports seen rising to record levels this fiscal :

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Having crossed 1.42 lakh tonnes during January, rubber imports are poised to surpass all-time records this year.

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Imports during the first nine months of the current fiscal have surged 118 per cent.

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Industry estimates put the year-end import at 1,80,000 tonnes, more than double the 77,616 tonnes imported in 2008-09.

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Import during 2007-08 was 86,394 tonnes and in 2006-07 it was 89,799 tonnes.

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Increasing demand from the consuming industry and production slippages are spurring imports.

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With the country slipping out of recession, rubber demand and consumption have picked up from last February onwards, sources in the Rubber Board said.

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In Other major Commodities Updates we can read about centre govt move to boost ethanol price.

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Centre tries to boost ethanol price, violates contracts with OMCs:

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The move could boost prices for your evening tipple and all other sectors using alcohol as an input/raw material.

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And that, after violating earlier ethanol supply contracts struck between Oil Marketing Companies (OMCs) and sugar mills, besides circumventing the stipulations fo the National Biofuel Policy, all ostensibly to advantage sugar companies.

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The new ethanol requirement will take effect from Feb. 1 and last 90 days.

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In direct contrast, the food ministry here has pro-actively revived the ethanol doping programme (EDP) for fuel even while facilitating a higher price level for the new contracts in a year of low cane output and high priced sugar imports.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here